BRRRR- Buying (Financing)

[Mike Soofian]

Hi, 

Still learning the ropes and digesting but I am looking for confirmation to help drive this through my head...

In the below article, David talks about financing a BRRRR is optimal without the traditional loan.
https://www.biggerpockets.com/blog/brrrr-strategy-real-estate-investing

Being a newbie investor with only $10-20k in the tri-state area, I would need to either go to a PML/ HML or come up with creative financing (i.e. raise the money of individuals on my own by convincing people on my numbers)?

Aside from the above financing:

My Example is that I found a SFH for $195k (REO). ARV $315k.

My real estate agent has never done a foreclosure but mostly she was put off that the Heating Type is Other. She is afraid it is an oil issue and said I should expect (conservatively) to spend 80K. Now that is huge number and even if I lower to $50k would only give me a %7.24 CoC..

She said that their is no contingency in Foreclosures based on inspection. So I would not be able to back out if major repairs were needed. 

Leading to my question, how does one due their due diligence on such a thing without going under contract? Just seems catch 22... 

I have since asked her to double check that comment of not being able to back out due to a poor inspection report but waiting to hear.

Comments?